All else equal, the credit period offered to a firm's customers is likely to be shorter when (A) the seller operates in a marginally competitive market, and (B) the size of the account is large.

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In a marginally competitive market, firms are more likely to offer longer credit periods to attract or retain customers. Additionally, for large accounts, firms might also extend longer credit periods as a way to secure and maintain business relationships with significant customers.

All Else Equal, the Credit Period Offered to a Firm's